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Chapter 6

consumer

TermDefinition
Annual Percentage Yield(APY) The actual interest rate an account pays, stated on a yearly basis with the compound interest included.
Certificate of Deposit A time deposit that earns a fixed rate of interest for a specified length of time.
Compound Interest Interest paid on the original principle plus accumulated interest.
Liquidity A measure of how quickly you can get your cash without loss value.
Money Market Account A type of savings account that offers a more competitive interest rate than a regular saving account.
Simple Interest Interest computed only on the amount borrowed, without compounding.
Created by: lockwoodj